■ In contrast to 2013, big banks are currently more aggressive in raising term deposit (TD) rates compared to medium-sized banks.■ Based on our observations, BBCA has hiked the most YTD (+125bp) while BBRI has been the most aggressive in terms of special rates – due to its high LDR.■ We think the differences stem from diverging loan growth and asset quality trends between the big and medium-sized banks.■ We also think liquidity in medium-sized banks is relatively better (in terms of LDR and secondary reserves balance), suggesting minimal TD competition going forward. ■ We think current liquidity conditions remain relatively ample to support growth. Maintain Overweight; BBNI and BBTN are our picks. Risk is Rupiah depreciation.

■ Mr. Gigih Perkasa, an ex-Director of Planning, Investments, and Risk Management at PT. Pertamina (Persero) has been appointed as PGAS’s new CEO. ■ He joins his Pertamina colleague who became PGAS’ CFO in Apr 2018. According to local new reports, Mr. Gigih is specifically tasked with integrating Pertagas into PGAS. ■ The change in PGAS’s controlling shareholder, from government of Indonesia to Pertamina, arguably raises risks for PGAS’s minority shareholders.